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Graph the function.
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Capitalize
The process of recording an expenditure as an asset, rather than an expense, thereby spreading the cost over its useful life.
Bargain Purchase Option
A clause in a lease agreement that allows the lessee the option to purchase the leased asset at a price below its expected fair market value.
Executory Costs
Executory costs are the ongoing operating expenses in a lease agreement, such as insurance, maintenance, and property taxes, usually borne by the lessee.
Capital Lease
A lease treated as an acquisition of an asset and the incurrence of an obligation on the lessee's balance sheet, indicating a purchase and financing arrangement.
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